According to the new report from GoBankingRates.com, it takes making $60,000 annually to live comfortably in Portland.
The median income is $7,000 less than these numbers with an average Portland household making $53,000 per year. Rents are growing 14% per year and housing is going up 6-8%, so it is no wonder that it takes more and more money to live in Portland comfortably.
Even though the rising prices cannot be denied, $60,000 is still a bit overrated. The calculations were made using a 50-30-20 scheme. It means that to live comfortably, you are supposed to spend 50% of your income on necessary expenses such as rent and insurance, 30% at your discretion, and 20% you should leave in savings. So, according to this scheme, living comfortably means $12,000 in savings every year. But if using the same math, your household only plans to save $5,000 per year or less, you will still live comfortably with the median income in Portland.
Still, the prices for living in Portland are still quite frightening, even if you don’t need to save that much. You still have to earn $30,000 a year to cover expenses you can’t avoid, like food and rent. Considering this, you are living on a minimum wage, you will be short $900 a month.
The minimum wage is expected to go up to $14,75 within the next six years. If that happens and the expenses will not go up, a worker with a minimum wage will only have $1,60 to spend a day.